Which of the Following Would Probably Be the Least Appropriate

question 46

Multiple Choice

Which of the following would probably be the least appropriate allocation base for allocating overhead in a highly automated manufacturer of specialty valves?

• A)Machine-hours
• B)Power consumption
• C)Direct Labour-hours
• D)Machine setups

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Definitions:

Multiple Market Segments

The practice of dividing a broad consumer or business market, normally consisting of existing and potential customers, into sub-groups with similar needs or characteristics.

Geographic Markets

Market segments defined by geographic areas where customers share similar needs and characteristics.

Increased Sales

An upward trend in the quantity of products or services sold, indicating growth in revenue for a business.

Business Firm

An organization engaged in commercial, industrial, or professional activities with the aim of generating profits.